Exactly what I’m thinking. Why pay a couple hundred a year extra in taxes when you don’t have to

Yeah there's really no downside. The only thing I can think of is if they raise the premiums in a few years so our imputed income goes up.. but at that point we could just switch back to term right?

I don’t know if this applies to GVUL … so take with a grain of salt.

with other whole life plans … the premiums build some cash value. There are lots of options on how you can use that cash value. One way is to pay the premiums on the insurance policy.

for example …
(I’m making all these numbers up)
let’s say I have a whole life
policy that I bought at age 20. The monthly cost of the policy doesn’t change, and let’s say it’s $100 a month. At age 60,
after paying in for 40 years, my policy has a cash value of $10,000. I can stop paying the premium out of pocket and use the cash value to pay the premium for 100 months (ish…). So I can stop paying at 60, but keep the insurance until 68 ish.

would be interested to know if that’s an option with GVUL. Not particular useful if deltas only paying the premium for 2-3
years. But could be something if they’re paying for 35 years ….

Another question would be. If you take the cash value as “loans”, are those taxed?

If is like my WLI, I don’t pay taxes on it. Once I’m done taking all the cash value as taxes…you let the policy lapse and close the account.

Your example is exactly what many people with a lot more $$ than me do to replace assets anticipated to be lost to estate taxes. They create an ILIT (Irrevocable Life Insurance Trust) and the trust then purchases a universal/whole life policy with "gifts" made to the trust ($17k per person this year). Eventually, the gifts, coupled with the accrued cash value, make the policy premiums self-funding.

100 a month x 40yrs = 48k. You also have to take the compounding on it to get your final figure. Let say is 3% per year = 91k cash value.

you can pay your policy premium and it will keep growing 3% per year. It will be more than 8yrs before it will lapse.

yeah yeah. It was just rough numbers.

if that’s an option for GVUL…then you can take some significant life insurance with you after your retire for “free”

GVUL isn’t a whole life policy. I understand what you’re saying because I have a whole life policy I use for investments in that way. The webinar was clear to say this isn’t whole life policy.

Very informative podcast on this new benefit just released.

Podcast was very well done.
Highlights: investment fee was 2.25%. (Saw 2.25 and 2.5% in previous posts.) That fee was for all deposits into the “investment” side of the policy. Withdrawals also have a 2% or $25 fee, whichever less. Deposits go in after-tax basis. All investment side withdrawals below your cost basis are tax free.

For me, running side-by-side comparisons with identical ROIs, it looked like terms under 12 years, GVUL investing made sense. Beyond 18 years after-tax brokerage wins due to that 2.25% fee hammering your principal. Between 12-18 years, your individual tax rate situation could make a difference and it gets more nuanced. YMMV, DYODD, etc. If anyone has access to a monte-Carlo probability simulator, you might get some better results with some confidence intervals.